Land of Rising Inflation

Year-over-year inflation in Japan is now 0.9%. While not much, after decades of deflation, it’s good news. That said, most of the inflation is the result of higher energy and electricity prices, not wages. And higher energy costs are the result of the yen’s recent 25% depreciation against the US dollar, combined with oil being priced in dollars and Japan having to import more oil than ever post Fukushima.